News Release Details

New Matson Bi-Weekly Liner Operation to Improve Frequency of Service for FSM and Marshall Islands

OAKLAND, Calif.--(BUSINESS WIRE)--June 19, 2006--Matson Navigation
Company, Inc. (Matson) (NASDAQ:ALEX) announced today that it is
upgrading its service to eastern Federated States of Micronesia (FSM)
and the Republic of the Marshall Islands (RMI), effective August 4, by
introducing a new bi-weekly liner service from Guam. Matson is
chartering a 425-foot vessel for the new feeder service, which will
call Ebeye, Kwajalein, Majuro, Kosrae, Pohnpei and Chuuk. Matson
currently offers a monthly service to the Marshall Islands from
Honolulu via the container barge Islander and a 21-day service from
Guam to Kosrae, Pohnpei and Chuuk via a connecting carrier agreement.
The improved frequency of service will allow these island businesses
to diversify their product line while concurrently saving inventory
costs.

The shift of Matson's Marshall Island operations from Honolulu to
Guam will further increase the amount of transshipment activity in
Guam, making it a dynamic hub in the Pacific and facilitating the
economic growth of the islands. Matson will continue to offer weekly
service via connecting carrier agreements to Yap, Palau, Saipan,
Tinian and Rota. With this enhanced service, the FSM and RMI will be
well positioned to participate in global trade, with Guam as a major
gateway in the Pacific.

"With this new service, Matson will offer these Pacific islands
the best frequency ever offered in the region," said Dave Hoppes,
senior vice president, ocean services. "By introducing this new
bi-weekly liner service, Matson will further strengthen its ocean
transportation infrastructure for Guam and FSM. Earlier this year, the
company inaugurated a new Matson-dedicated service from the West Coast
to Guam, succeeding its former 10-year operating agreement with APL.
Today, Guam is served by Matson's five most modern, fuel-efficient
containerships, including four new ships built in the past four years.
Similarly, on the West Coast, Guam and Micronesia cargo move through
Matson-dedicated operations, focused specifically on Matson's customer
needs. All of this results in a modern, efficient and reliable service
from the U.S."

The chartered vessel, MV Cerrina, has the capacity for 650 TEUs
and is equipped with two onboard cranes. The ship will be renamed
Islander before the service starts up in August.

"Matson is particularly excited about this newest service
enhancement to the FSM and Marshall Islands in that we are able to
improve the level of service we provide while concurrently reducing
our customers' inventory costs," added Hoppes. "We are confident that
the bi-weekly liner service will benefit all of our customers in the
region. It is also a positive development for Guam, as it will now be
served by a modern fleet from the U.S. and a bi-weekly liner service
to neighboring islands that is designed to promote further development
of Guam as a major transshipment center in the Pacific."